Non-profit critical access hospitals, rural hospitals and those serving areas of persistent poverty could qualify for Paycheck Protection Program (PPP) loans under a new bipartisan bill offered by U.S. Sen. Roger Wicker (R-MS).
The PPP Access for Rural Hospitals Act, S. 310, which Sen. Wicker sponsored on Feb. 12 with cosponsor U.S. Sen. Tina Smith (D-MN), would waive the Small Business Administration (SBA) affiliation rules for such hospitals to be able to receive PPP loans.
“Since the onset of the coronavirus pandemic, our nation’s critical access hospitals and rural hospitals have continued to provide care to some of our nation’s most vulnerable populations despite facing substantial increases in operating costs,” Sen. Wicker said. “Ensuring these vital facilities are able to apply for financial relief through the PPP will mean they can continue to serve their communities as we work to defeat this virus.”
The PPP, which was established under the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, provides forgivable loans to small business owners having fewer than 500 employees.
However, many smaller hospitals operate as part of a larger health system that exceeds the 500-employee limit under SBA’s affiliation rules, making them ineligible for PPP, according to the senator’s office, which noted that granting these hospitals access to the PPP program would allow them to retain critical staff and target resources on providing quality care during the ongoing COVID-19 pandemic.
“As hospitals across the country continue to face the pandemic, they need financial support,” added Sen. Smith. “We have to keep fighting for rural areas and advocating for the support they need.”
The bill has been referred for consideration to the U.S. Senate Small Business and Entrepreneurship Committee.